Buying a new build home can feel out of reach for many buyers, particularly when rising property prices and deposit requirements make affordability difficult. However, new mortgage solutions are emerging to help more people step onto the property ladder.
One example is the New Build Boost scheme from Gen H. This scheme was introduced as an alternative to Help to Buy and is designed to support buyers who want to purchase a new build home with a smaller deposit.
In this episode of On the Ladder, Sarah Tucker explains how the New Build Boost scheme works and shares a real example of how it helped one family move into their ideal home.
Watch the episode:
What is the Gen H New Build Boost scheme?
New Build Boost is a mortgage scheme designed to help buyers purchase a new build property with a smaller deposit.
The structure is similar to the former Help to Buy scheme, but instead of being backed by the government, it is offered by the mortgage lender Gen H.
The scheme works in three parts.
The buyer contributes a 5 percent deposit.
Gen H provides an 80 percent mortgage.
A 15 percent boost is added to bridge the gap between the deposit and the mortgage.
This boost acts as an equity loan that helps make the purchase more affordable for buyers.
The boost is interest free for the first five years, which can help keep early monthly payments more manageable.
Understanding the 15 percent boost
The 15 percent boost is an equity loan. This means the amount that needs to be repaid will depend on the future value of the property.
The boost remains fixed for the first five years and no interest is charged during this period.
After five years, if the loan has not been repaid through savings or a remortgage, the amount owed will move in line with the value of the property.
If the property value increases, the amount to repay may increase. If the property value decreases, the amount to repay could be lower than the original loan.
The scheme is available on Charles Church and Persimmon new build homes across England.
A real example of New Build Boost in action
Sarah shares the story of Karina and her family.
Karina and her husband have a combined household income of £78,000 and three children. One day they were out for a walk and passed a new Persimmon housing development. Out of curiosity they decided to have a look.
They were not planning to move. In fact, they were already living in a Persimmon new build home. However, once they saw the new development they realised the properties would suit their growing family much better.
One of the homes had everything they were looking for including four bedrooms, a garden and a utility room.
Karina spoke with the sales adviser on the development to explore their options. Although they had a 5 percent deposit and some equity in their current home, they could not quite afford the mortgage required to purchase the new property.
The sales adviser explained the New Build Boost scheme. The additional 15 percent boost helped bridge the affordability gap.
This meant Karina and her family were able to purchase the £400,000 home they had fallen in love with.
Today they are living in a home that better suits their family, all thanks to discovering the scheme during what began as a simple family walk.
Could New Build Boost help you?
The New Build Boost scheme can help buyers who may struggle to purchase a property with a standard mortgage alone.
It may be particularly helpful for first time buyers and home movers looking to purchase a new build property with a smaller deposit.
If you are interested in learning more, you can visit a Persimmon or Charles Church development in England and speak with the sales team about whether the scheme is available.
Speaking with a qualified mortgage adviser can also help you understand whether this option could work for your financial situation.
Full transcript
We’re about to help you get on the property ladder by telling you everything you need to know about the home buying process. I’m Sarah Tucker and this is On the Ladder and you’re about to take the next step.
I want to tell you about New Build Boost. This scheme is designed to help first time buyers and movers buy a new build home. It was introduced this year as a replacement for Help to Buy and is structured in a very similar way. Instead of being backed by the government, it is offered by a mortgage lender called Gen H.
Here is how it works.
A buyer brings a 5 percent deposit. They take an 80 percent mortgage from Gen H and they receive a 15 percent boost to close the gap.
New Build Boost is available on all Charles Church and Persimmon properties across England.
There are a few important things to know about this 15 percent boost.
It is an equity loan which means the amount you repay will change depending on the value of your home. The boost is frozen for five years and you never pay any interest on it.
If you do not repay the boost with savings or through a remortgage after five years, it will move up or down in line with the value of your home.
If the value of your property falls, you could repay less than you originally borrowed.
This scheme allows buyers to purchase a new build property with just a 5 percent deposit and there are very few mortgage products like this currently available.
If this sounds interesting to you, you can visit a Persimmon or Charles Church development in England and speak with an adviser on site about your options.
If you are finding this content helpful, please hit the subscribe button. The bigger the channel becomes, the more people we can help get onto the property ladder.
I also want to tell you about an early New Build Boost customer named Karina.
Karina and her husband have a household income of £78,000 and three children. One day they were out for a walk and passed a new Persimmon development. They were not planning to move because they were already living in a Persimmon new build, but they decided to take a look.
They quickly realised the homes on this site were perfect for their family. The properties had four bedrooms, a garden and a utility room, which gave them more space for their children.
They had a 5 percent deposit and some equity in their current home, but they still could not quite afford the mortgage needed to purchase the property.
The sales adviser introduced them to the New Build Boost scheme which helped bridge the gap.
With the 15 percent boost they were able to afford the £400,000 home they had fallen in love with.
Today Karina and her family are living in their new home, all thanks to discovering the scheme during a spontaneous family walk.
Thank you for watching this episode of On the Ladder. Hit the subscribe button to be the first to know when the next episode drops. Please leave any questions you have in the comments and we will cover them in future episodes.
This has been On the Ladder and you just took the next step. See you next time.
